NewzIntel.com

Category: Crime

  • MIL-OSI Security: Medina and Cleveland Men Charged with Fraudulently Obtaining $4.2 Million in COVID Relief Funds

    Source: US FBI

    CLEVELAND – A federal grand jury in Cleveland returned a 13-count indictment charging two individuals for their alleged roles in a scheme to fraudulently obtain approximately $4.2 million in COVID-19 relief funds guaranteed by the U.S. Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Joseph Oloyede, 61, of Medina, Ohio and Edward Oluwasanmi, 61, of Willoughby, Ohio are charged with conspiracy to commit wire fraud, wire fraud, and money laundering offenses.

    According to the indictment, from in or around April 2020, and continuing through on or about February 28, 2022, Oloyede and Oluwasanmi devised a scheme to defraud the SBA and financial institutions by obtaining COVID-19 relief funds from the SBA’s Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP) under false pretenses. The indictment states that Oloyede and Oluwasanmi submitted PPP and EIDL loan applications containing false information for entities under their control and submitted falsified tax and wage documents to support these applications. The indictment alleges that they obtained approximately $1.2 million in SBA funds for Oluwasanmi’s entities and $1.7 million for Oloyede’s entities. Oloyede is also alleged to have submitted falsified PPP and EIDL loan applications in the names of other co-conspirators and confederate borrowers and their businesses, obtaining approximately $1.3 through those applications, for a total of at least $4.2 million obtained through the fraud.

    An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. If convicted, the Defendant’s sentence will be determined by the Court after review of factors unique to this case, including the Defendant’s prior criminal record, if any, the Defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.

    This investigation was conducted by the U.S. Department of Transportation – OIG, as part of the Pandemic Response Accountability Committee Fraud Task Force, Cleveland FBI, and IRS – Criminal Investigation. This case is being prosecuted by Assistant U.S. Attorney Edward Brydle.

    MIL Security OSI –

  • MIL-OSI Security: Forum Provides Best Practices and Resources to Prevent and Respond to Hate Crimes that Target Religious Institutions

    Source: US FBI

    In an effort to prevent hate crimes that target religious institutions, and to prepare faith-based leaders and congregation members with strategies for responding when faced with such security issues, the U.S. Attorney’s Office for the Northern District of Ohio, the U.S. Department of Justice Community Relation Services (“CRS”) Midwest Regional Office, and the Cleveland Field Office of the FBI is facilitating a free event, “Protecting Places of Worship,” held on Wednesday, May 29, from 10 a.m. to 1 p.m. at Mt. Olive Missionary Baptist Church, 3290 E. 126th St., Cleveland, OH 44120. Registration is open to the public by calling the Public Affairs Officer of the United States Attorney’s Office at 216-622-3807.

    “Protecting Places of Worship” is a half-day forum that will provide information about religion-focused hate crimes; how to best report such incidents; federal and state hate crimes laws; law enforcement threat assessments; ways to protect places of worship from potential hate crimes and other threats of violence; and other strategies for combatting hate and extremism. This program brings together federal and local law enforcement, federal and local prosecuting attorneys, civil rights organizations, and community organizations to discuss these issues. The forum’s goal is to share strategies and other information to help communities of faith effectively address and respond to bias incidents and hate crimes that affect their places of worship.

    Discussion topics include:

    • Existing federal and state hate crime statutes, and increasing public awareness of hate crimes reporting procedures and prosecutions.
    • Analysis of hate crime data and trends, including recent examples of hate crimes targeting places of worship.
    • Strategies for responding to active-shooter incidents.
    • Best practices for assessing the physical security of places of worship and identifying potential security concerns, along with competitive grant opportunities and other strategies to address those concerns. 
    • Interfaith panel discussion to foster dialogue and collaboration among diverse religious communities, and to share strategies these organizations have used to address bias incidents.

    All sessions will be followed by Q & A.

    Featured speakers include those from the following organizations: U.S. Attorney’s Office for the Northern District of Ohio; FBI, Cleveland Field Office; Cuyahoga County Prosecutor’s Office; Anti-Defamation League Cleveland; U.S. Department of Homeland Security, Cybersecurity and Infrastructure Security Agency; and the Federal Emergency Management Agency.

    Panelists include leaders from Cleveland’s Islamic, Sikh, and Hindu communities, the Jewish Federation of Cleveland, and the Catholic Diocese of Cleveland. The Mount Pleasant Ministerial Alliance is hosting this event.

    This event is part of the U.S. Department of Justice’s United Against Hate initiative. For questions or more details about the event, contact Executive Assistant U.S. Attorney Edward Feran at 216-622-3709 or Edward.Feran@usdoj.gov.

    About CRS
    Established by Title X of the Civil Rights Act of 1964, CRS’ expanded its services under the Matthew Shepard and James Byrd, Jr., Hate Crimes Prevention Act of 2009. As a component of the United States Department of Justice, CRS serves as “America’s Peacemaker,” offering support to communities experiencing tension or conflict due to differences of race, color, natural origin, gender, gender identity, sexual orientation, religion, and disability. Through its services, CRS enhances the ability of community members to independently and collaboratively prevent and resolve future conflicts by fostering knowledge, understanding and communication.

    CRS Programs
    The primary objectives of all CRS programs are to assist parties in conflict by fostering understanding of various perspectives, facilitating the exchange of information regarding resources and best practices, and aiding communities as they identify and implement solutions. CRS conciliation specialists maintain impartiality and refrain from taking sides among disputing parties. Instead, they facilitate the process, empowering those involved to develop their own mutually agreeable solutions.

    MIL Security OSI –

  • MIL-OSI Security: Ardmore Resident Pleads Guilty to Felony Assault Charge

    Source: US FBI

    MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Richard Alan Chastain, age 52, of Ardmore, Oklahoma, entered a guilty plea of one count of Assault with a Dangerous Weapon with Intent to Do Bodily Harm in Indian Country.

    The Indictment alleged that on July 17, 2024, Chastain assaulted the victim with a dangerous weapon, with intent to do bodily harm. The crime occurred in Carter County, within the boundaries of the Chickasaw Nation Reservation, in the Eastern District of Oklahoma.

    The charges arose from an investigation by the Ardmore Police Department and the Federal Bureau of Investigation.

    The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea, and ordered the completion of a presentence investigation report.  Chastain will remain in the custody of the United States Marshals Service pending sentencing.

    Assistant U.S. Attorney Jonathan E. Soverly represented the United States.

    MIL Security OSI –

  • MIL-OSI Security: December Federal Grand Jury 2024-B Indictments Announced

    Source: US FBI

    United States Attorney Clint Johnson today announced the results of the December Federal Grand Jury 2024-B Indictments.

    The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.

    Terrance Frank Buffalomeat. Second Degree Burglary in Indian Country; Simple Assault. Buffalomeat, 20, of Hominy and a member of the Osage Nation, is charged with breaking into Midwest Wraps with intent to steal. He is further charged with assaulting a victim. The FBI and the Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Adam Goodrum is prosecuting the case. 24-CR-392

    Mark Verron Callshim, Jr. Robbery in Indian Country; Carrying, Using, and Brandishing a Firearm During and in Relation to a Crime of Violence (superseding). Callshim, 37, of Tulsa and a member of the Ponca Tribe of Indians of Oklahoma, is charged with taking something of value by force, violence, and intimidation. He is further charged with brandishing a firearm in relation to a crime of violence. The FBI and the Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Mike Flesher is prosecuting the case. 24-CR-159

    Tony Deanglio Davis. Felon in Possession of a Firearm. Davis, 50, of Tulsa, is charged with possessing a firearm, knowing he was previously convicted of felonies. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Mike Flesher is prosecuting the case. 24-CR-393

    Keith Edward Enyart; Jennifer Barger Enyart. Child Neglect in Indian Country (Counts 1 & 4); Child Abuse in Indian Country (Counts 2 & 5); Assault with a Dangerous Weapon with Intent to Do Bodily Harm in Indian Country (Count 3). Keith Enyart, 52, a member of the Wyandotte Nation, and Jennifer Enyart, 44, of Wyandotte, are charged with willfully failing to provide appropriate medical care and supervision to protect a child under their care. They both are charged with willfully harming the safety and welfare of the minor victim. Jennifer is additionally charged with intentionally assaulting the minor child by tasing his testicles. The FBI is the investigative agency. Assistant U.S. Attorney Stephanie N. Ihler is prosecuting the case. 24-CR-394

    Sarai Jamila Nyasha Freeman. Passing and Uttering Counterfeit Obligations and Securities (Counts 1 & 2); Aggravated Identity Theft (Counts 3 & 4); Failure to Appear (Count 5) (superseding). Freeman, 40, of Aurora, Colorado, is charged with forging and cashing counterfeit U.S. Treasury checks. She is further charged with using the victim’s last name and social security number without lawful authority. Additionally, Freeman failed to appear for trial, knowing she was required under the conditions of her pretrial release. The U.S. Treasury Inspector General for Tax Administration and the Treasury Inspector General are the investigative agencies. Assistant U.S. Attorney David D. Whipple is prosecuting the case. 24-CR-220

    Grant Stephen Goers. Coercion and Enticement of a Minor (Counts 1, 3, & 4); Production of Child Pornography (Count 2). Goers, 23, of Greenwood, Arkansas, is charged with knowingly persuading and enticing three separate minor victims under 18 years old to engage in sexual activity. He is further charged with enticing a minor victim to produce sexually explicit material. Homeland Security Investigations, the Tulsa Police Department, the Sand Springs Police Department, and the Tahlequah Police Department are the investigative agencies. Assistant U.S. Attorney Ashley Robert is prosecuting the case. 24-CR-395

    Diana May Harjo. Assault Resulting in Serious Bodily Injury in Indian Country. Harjo, 39, of Tulsa and a member of the Sac and Fox Nation, is charged with assaulting the victim, which resulted in serious bodily injury. The FBI and the Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Michele W. Hulgaard is prosecuting the case. 24-CR-403

    Ricky Troy Juarez. Second Degree Murder in Indian Country. Juarez, 32, of Tulsa and a member of the Choctaw Nation of Oklahoma, is charged with unlawfully killing Shane Thompson, Sr., with malice aforethought. The FBI and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Eric O. Johnston is prosecuting the case. 24-CR-404

    Jose Jesus Lozano-Gonzalez. Unlawful Reentry of a Removed Alien; Felon in Possession of a Firearm and Ammunition; Alien Unlawfully in the United States in Possession of a Firearm and Ammunition. Lozano-Gonzalez, 25, a Mexican national, is charged with unlawfully reentering the United States after having been previously removed in Feb. 2022. Further, Lozano-Gonzalez unlawfully possessed a firearm and ammunition, knowing he was previously convicted of felonies in Oklahoma. U.S. Immigration and Custom’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney Christian Harris is prosecuting the case. 24-CR-374

    Stuwart Raymon Owens. Felon in Possession of a Firearm and Ammunition. Owens, 39, of Tulsa, is charged with possessing a firearm and ammunition, knowing he was previously convicted of felonies. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney John W. Dowdell is prosecuting the case. 24-CR-405

    Rudi Reyes-Rosales. Unlawful Reentry of a Removed Alien. Reyes-Rosales, 30, a Mexican national, is charged with unlawfully reentering the United States after having been previously removed in July 2021. U.S. Immigration and Custom’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney Thomas E. Buscemi is prosecuting the case. 24-CR-396

    Kyle Thomas Smith. Felon in Possession of a Firearm and Ammunition. Smith, 33, of Claremore, is charged with possessing a firearm and ammunition, knowing he was previously convicted of felonies. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney John Brasher is prosecuting the case. 24-CR-406

    Ryan Blake Still. Failure to Register as a Sex Offender. Still, 33, transient, is charged with knowingly failing to register
    as a sex offender from June 2024 through July 2024 after previously being convicted of Sexual Abuse of a Minor in 
    Indian County in 2021. The U.S. Marshal Service is the investigative agency. Assistant U.S. Attorney Michele Hulgaard is prosecuting the case. 24-CR-407

    Marcos Javier Suazo-Otero; Marcos Javier Suazo-Mancilla. Drug Conspiracy; Possession of Methamphetamine with Intent to Distribute; Possession of Cocaine with Intent to Distribute; Maintaining a Drug-Involved Premises; Unlawful Reentry of a Removed Alien; Possession of Firearms in Furtherance of a Drug Trafficking Crime. Suazo-Otero, 46, and Suazo-Mancilla, 23, both Mexican nationals, are charged with conspiring to distribute methamphetamine from Jan. 2024 through Nov. 2024. They are further charged with maintaining a residence for drug distribution. Suazo-Otero knowingly possessed methamphetamine with intent to distribute and is additionally charged with unlawfully reentering the United States after having been previously removed in Aug. 2018. Lastly, Suazo-Mancilla knowingly possessed cocaine with intent to distribute and possessed firearms while drug trafficking. The Drug Enforcement Administration, the Tulsa Police Department, and the Tulsa County Sheriff’s Office are the investigative agencies. Assistant U.S. Attorney David A. Nasar is prosecuting the case. 24-CR-397

    Aristride Villatoro-Izaguirre. Unlawful Reentry of a Removed Alien. Villatoro-Izaguirre, 32, a Honduran national, is charged with unlawfully reentering the United States after having been previously removed in Feb. 2018. U.S. Immigration and Custom’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney Adam Goodrum is prosecuting the case. 24-CR-398

    MIL Security OSI –

  • MIL-OSI Security: Chinese Nationals Sentenced to Serve 20 Years Collectively in Federal Prison for Illegally Trafficking Black-Market Marijuana From Oklahoma Grow Operation

    Source: US FBI

    OKLAHOMA CITY – JEFF WENG, 47, of China and Brooklyn, New York, has been sentenced to serve 120 months in federal prison for his role in a drug trafficking conspiracy, announced U.S. Attorney Robert J. Troester.

    On June 6, 2023, a federal grand jury charged Weng and co-defendant Tong Lin, 29, with conspiracy to possess marijuana plants with intent to distribute.  On January 18, 2024, after a two-day trial, a federal jury deliberated about an hour before it found Weng and Lin guilty of drug conspiracy.

    Between December 2022 and May 2023, evidence at trial indicated that Weng managed a marijuana grow in Wetumka, Oklahoma, and licensed by the Oklahoma Medical Marijuana Authority. Evidence showed that Lin managed matters when Weng was not present. One witness testified that, as part of their participation in the drug conspiracy, they drove delivery vans disguised as commercial vehicles, including one disguised as an “Amazon” delivery van, to the Wetumka Grow 10 to 15 times between December 2022 and March 31, 2023.  The witness further testified that they picked up between 150 and 200 pounds of marijuana each time from the Wetumka Grow, and that Lin helped load the fake “Amazon” delivery van with marijuana. The witness testified they transported the marijuana to a stash house in Oklahoma City. Every Friday, the witness transported the marijuana from the stash house to a warehouse in Oklahoma City. There, they loaded more than 2,000 pounds of marijuana at a time into a semi-truck trailer, which transported the marijuana from Oklahoma to the East Coast. Over approximately seven months, the witness shipped upwards of 56,000 pounds of marijuana out of Oklahoma via semi-truck. Evidence also showed that law enforcement searched the Wetumka Grow in May 2023 and located 19,661 marijuana plants in various stages of growth, more than $100,000 of vacuum-sealed cash hidden in Weng’s closet attic space, and a firearm.

    At the sentencing hearing on December 19, 2024, U.S. District Judge Scott L. Palk sentenced Weng to serve 120 months in federal prison, followed by five years of supervised release. In announcing his sentence, Judge Palk noted the role Weng played in a “significant” illegal marijuana operation, and the need for deterrence. On June 17, 2024, Lin was sentenced to serve 120 months in federal prison, followed by five years of supervised release.

    This case is the result of an investigation by the FBI Oklahoma City Field Office, along with assistance from the Oklahoma Bureau of Narcotics. It is also a part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation.  OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

    Assistant U.S. Attorneys Wilson D. McGarry and David Nichols, Jr. prosecuted the case.

    Reference is made to public filings for additional information. 

    MIL Security OSI –

  • MIL-OSI Security: $6 Million Worth of Oregon Properties Forfeited in Connection to Interstate Marijuana Trafficking Organization

    Source: US FBI

    PORTLAND, Ore.—The U.S. Attorney’s Office for the District of Oregon announced today that it has forfeited on behalf of the United States 14 real properties located in Oregon—together worth more than $5.7 million—that were used by an interstate drug trafficking organization to illegally grow marijuana for redistribution and sale in other states. The owner of a 15th property agreed to pay the government $400,000 in lieu of having their property forfeited.

    Beginning at an unknown time, and continuing until September 2021, the properties, located in Clatsop, Columbia, Linn, Marion, Polk, and Yamhill counties, were used as illegal marijuana grow houses by an interstate drug trafficking organization led by Fayao “Paul” Rong, 53, of Houston, Texas. On July 19, 2023, after previously pleading guilty to conspiracy to manufacture marijuana, Rong was sentenced to 30 months in federal prison and five years’ supervised release.

    “This prosecution and yearslong effort to forfeit properties used by the Rong organization to grow and process thousands of pounds of marijuana demonstrate the long reach of our commitment to holding drug traffickers accountable and mitigating the damage these criminal organizations inflict on neighborhoods and communities,” said Natalie Wight, U.S. Attorney for the District of Oregon.

    “The goal of drug traffickers is to generate profits through their crimes,” said David F. Reames, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), Seattle Field Division. “The DEA and our partners at the U.S. Attorney’s Office for the District of Oregon and the Oregon State Police worked hard in this case to investigate and forfeit the ill-gotten gains of this organization, benefiting our entire community.”

    “The Oregon State Police is committed to disrupting and dismantling drug trafficking organizations operating within our state. Our priorities include safeguarding Oregon’s natural resources and mitigating the impact illicit marijuana has on them,” said Tyler Bechtel, Oregon State Police (OSP) Lieutenant. “This case is a great example of the results that can be achieved when all levels of law enforcement work together toward our common goals.”

    According to court documents, Rong purchased numerous residential houses in Oregon using several different identities and, with others in his organization, used them to grow and process marijuana and prepare it for transport to states where its use remains illegal. In a 12-month period beginning August 2020, Rong’s organization trafficked more than $13.2 million dollars in black market marijuana.

    In early September 2021, a coordinated law enforcement operation led by DEA and OSP targeted Rong’s organization. Federal, state, and local law enforcement partners executed search warrants on 25 Oregon residences and Rong’s home in Houston. During the precipitating investigation and ensuing search warrants, investigators seized nearly 33,000 marijuana plants, 1,800 pounds of packaged marijuana, 23 firearms, nine vehicles, $20,000 in money orders, and more than $591,000 in cash.

    The Rong organization takedown followed a 14-month investigation initiated by OSP after the agency learned of excessive electricity use at the various properties, which, in several instances, resulted in transformer explosions. Multiple citizen complaints corroborated law enforcement’s belief that Rong was leading a large black market marijuana operation. With the assistance of the Columbia and Polk County Sheriff’s Offices, OSP found associated marijuana grows in Clatsop, Columbia, Linn, Marion, Multnomah, and Polk Counties. On February 18, 2022, Rong was arrested by DEA agents in Houston.

    This case was investigated by DEA, OSP, and the U.S. Marshals Service with assistance from the FBI; Homeland Security Investigations; Oregon Department of Justice; Portland Police Bureau; the Yamhill, Clatsop, Marion, Multnomah, Columbia, and Polk County Sheriff’s Offices; Central Oregon Drug Enforcement Team; and Linn Interagency Narcotics Enforcement Team. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon. Forfeiture proceedings were handled by the U.S. Attorney’s Office’s Asset Recovery and Money Laundering Division.

    The proceeds of forfeited assets are deposited in the Justice Department’s Assets Forfeiture Fund (AFF) and used to restore funds to crime victims and for a variety of other law enforcement purposes. To learn more about the AFF, please visit: https://www.justice.gov/afp/assets-forfeiture-fund-aff.

    This prosecution is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the U.S. by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

    MIL Security OSI –

  • MIL-OSI Security: Central Oregon Drug Trafficker Sentenced to Federal Prison

    Source: US FBI

    PORTLAND, Ore.—A Central Oregon drug trafficker who conspired with others to traffic fentanyl and methamphetamine to Madras and Redmond, Oregon, and surrounding areas, was sentenced to federal prison today.

    Israel Sarabia, 30, of Culver, Oregon, was sentenced to 70 months in federal prison and five years’ supervised release.

    According to court documents, as part of a joint drug trafficking investigation by the U.S. Drug Enforcement Administration (DEA) and the Central Oregon Drug Enforcement Team (CODE), investigators learned that a Central Oregon drug trafficking organization was using a courier to transport bulk quantities of drugs from either Southern California or Mexico into Oregon. On December 10, 2022, investigators located and stopped the courier in Klamath Falls, Oregon. While searching the courier’s vehicle, investigators located three packages containing approximately 30,000 counterfeit Oxycodone pills that later tested positive for fentanyl.

    Further investigation revealed that the courier was traveling to Sarabia’s residence and that he had been tasked by Sarabia with bringing him fentanyl from Southern California or Mexico. On March 15, 2023, investigators located and arrested Sarabia near his residence in Culver. On the same day, investigators located and seized 519 grams of methamphetamine, more than 1,000 fentanyl pills, 41 grams of cocaine, and nine firearms from the residence of a co-conspirator who was working for Sarabia and storing drugs on his behalf.

    On March 15, 2023, a federal grand jury in Portland returned a six-count indictment charging Sarabia and an accomplice with conspiring with one another to distribute and possess with intent to distribute fentanyl and methamphetamine, possessing with intent to distribute fentanyl, and distributing fentanyl and methamphetamine. A third individual was also charged with conspiracy. 

    On August 21, 2023, Sarabia pleaded guilty to conspiracy to distribute and possess with intent to distribute fentanyl and methamphetamine.

    This case was investigated by DEA and CODE. It was prosecuted by Lewis S. Burkhart, Assistant U.S. Attorney for the District of Oregon.

    The CODE team is a multi-jurisdictional narcotics task force supported by the Oregon-Idaho High-Intensity Drug Trafficking Area (HIDTA) program. CODE includes members of the Bend, Redmond, Prineville, Madras, Sunriver, and Black Butte Police Departments; the Warm Springs Tribal Police Department; the Deschutes, Crook, and Jefferson County Sheriff and District Attorney’s Offices; the Oregon State Police; the Oregon National Guard; DEA; and the FBI.

    MIL Security OSI –

  • MIL-OSI United Nations: 23 May 2025 Six public health champions celebrated at the Seventy-eighth World Health Assembly

    Source: World Health Organisation

    At an award ceremony taking place during a Plenary of the Seventy-eighth World Health Assembly in Geneva on Friday, 23 May 2025, public health prizes and awards were presented to persons and institutions from around the world for their outstanding contributions to public health.

    The six 2025 laureates received their awards from the Seventy-eighth World Health Assembly President Teodoro J. Herbosa, together with high-level representatives of the foundations that established these public health awards and prizes, and WHO Director-General, Dr Tedros Adhanom Ghebreyesus.

    In February 2025, the Executive Board of the World Health Organization decided to distinguish six laureates to celebrate their unique role for public health in their countries, their regions and globally.

    They come from four WHO Regions: Africa, Eastern Mediterranean, Europe and Western Pacific.

    Sasakawa Health Prize

    Dr Merete Nordentoft from Denmark is the 2025 winner of the Sasakawa Health Prize

    The Sasakawa Health Prize is awarded for outstanding innovative work in health development to a person or persons, an institution or institutions, or a nongovernmental organization or organizations. Such work includes the promotion of given health programmes or notable advances in primary health care.

    The Executive Board awarded the Sasakawa Health Prize for 2025 to Dr Merete Nordentoft from Denmark for her outstanding innovative work in health development.

    Dr Merete Nordentoft giving the opening speech at the welcoming reception at the IEPA (International Early Psychosis Association) congress in Tokyo. IEPA has played a pivotal role in implementing specialized early intervention services in many countries around the World. Merete Nordentoft was president for IEPA 2014–2016, and she was chairing the scientific committee. © 2014, Courtesy of Merete Nordentoft

    Dr Merete Nordentoft has made important contributions to mental health care by providing concrete, primary health-care-based solutions to address gaps in the chain of care. In 1998, she created the OPUS outreach treatment programme that has resulted in significantly improved outcomes for young people with first-episode psychosis, demonstrating substantial achievements in advancing mental health programmes and improving the quality of care. One of OPUS’s key success factors is the direct involvement of communities and family members. The concept has since served as inspiration for many countries throughout the world. Her intervention research on suicide prevention has directly informed Denmark’s national action plan for suicide prevention, which includes regional suicide preventive clinics and collaboration between helplines run by nongovernmental organizations and professional helplines.

    The focus on early intervention and increasing the accessibility of mental health services at the community level benefits vulnerable groups.

    “With the right support, early enough, recovery is not only possible – it is likely,” said Dr Merete Nordentoft.

    United Arab Emirates Health Foundation Prize

    Dr Jožica Maučec Zakotnik from Slovenia won the 2025 United Arab Emirates Health Foundation Prize

    The United Arab Emirates Health Foundation Prize is awarded for an outstanding contribution to health development to a person or persons, an institution or institutions, or a nongovernmental organization or organizations.

    The Executive Board awarded the 2025 Prize to Dr Jožica Maučec Zakotnik from Slovenia for her outstanding contribution to health development.

    Dr Zakotnik (to the right) at a press conference to launch a new national plan on mental health. © 2017, Courtesy of Jožica Maučec Zakotnik

    Dr Jožica Maučec Zakotnik has made exceptional contributions to the promotion of healthy lifestyles and to ensuring equal access to preventive services in health care for all. She co-developed an innovative model of multidisciplinary, free-of-charge health promotion centres that include access to mental health services, breaking access barriers for the most vulnerable through collaboration with social services and schools.

    She also led the establishment in 2005 of the MURA Health and Development Centre, meant to address social determinants of health in an impoverished region, that became a WHO collaborating centre in 2009 for cross-sectoral approaches to health and development. At the National Public Health Institute, Dr Zakotnik collaborated with firefighting associations to increase awareness of colorectal cancer screening amongst men. As a State Secretary (2001–2004 and 2017–2018), she helped to scale up successful pilot programmes at the national level, including for the first national programme on nutrition, the strategy for promotion of health-enhancing physical activity and the MURA mental health programme.

    “Together we can make a lasting difference in the lives of countless individuals – at home and beyond,” said Dr Jožica Maučec Zakotnik.

    Highness Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah Prize for Research in Health Care for the Elderly and in Health Promotion

    Professor Huali Wang (China) and the Geriatric Healthcare Directorate of the Ministry of Health (State of Kuwait) are the 2025 winners of the Highness Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah Prize for Research in Health Care for the Elderly and in Health Promotion

    His Highness Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah Prize for the Promotion of Healthy Ageing is awarded to a person or persons, an institution or institutions, or a nongovernmental organization or organizations who have made an outstanding contribution to research, health promotion, policy and/or programmes on healthy ageing.

    The Executive Board awarded the 2025 Prize jointly to Professor Huali Wang (China) and the Geriatric Healthcare Directorate of the Ministry of Health (State of Kuwait) for their outstanding contributions to healthy ageing.

    Professor Huali Wang (middle, the front row) advocated for raising awareness of dementia care and prevention. © 2019, Dementia Care and Research Center, Peking University Institute of Mental Health

    Professor Huali Wang has made significant contributions to healthy ageing at the national and global levels. She helped shape China’s national healthy ageing strategic plan and national dementia action plan, developing a comprehensive approach for mental care. The approach, now active across 27 regions, has resulted in dementia screenings for over 100 000 older adults, as well as health education campaigns and interdisciplinary, community-based service models that integrate professional and family support. Professor Wang also pioneered the development of dementia caregiver support groups, establishing in 2000 China’s first Memory Café, which promotes community involvement and has since become a national model. Professor Wang has championed cognitive stimulation therapy training and implementation in over 20 provinces. Professor Wang has collaborated with WHO on global dementia guidelines and on the iSupport online course, helping to extend caregiver support worldwide. The social prescribing pilot programme that Professor Wang initiated in Shangrao has received global recognition.

    “This award is not just a recognition of our past work but a call to action for future endeavours – together, we can make a difference in the lives of many,” said Professor Huali Wang.

    On-site training of the adopted Kuwait version of the WHO Global Ageing Population Survey (WHO-GAPs) methodology – Kuwait Older Adults Health Survey (KOAHS). © 2024, Courtesy of Fatemah Bendhafari

    The Geriatric Healthcare Directorate at the Ministry of Health, Kuwait, has designed a multifaceted and comprehensive approach to healthy ageing. It developed a National Health Strategy for Older Adults (2024–2030) that provides a clear framework for the provision of accessible, high-quality integrated care and the promotion of active and healthy ageing. The implementation of the Kuwait Older Adults Health Survey has helped to inform policies and improve service delivery. Innovative mobile vaccination campaigns have benefited an additional 1000 older adults and caregivers. Comprehensive training programmes on healthy ageing, benefiting over 1000 caregivers, physicians, pharmacists and nurses are reported to have improved health-care delivery and coverage for older adults by 40%. The Directorate carries out community engagement initiatives to create inclusive and accessible environments that are responsive to the needs of older people and it also collaborates with nongovernmental organizations to foster community support.

    “This recognition is not only a reflection of our efforts, but a renewed responsibility to continue striving for excellence in elderly care, preserving dignity and honouring their lifelong contributions,” said Dr Fatemah Bendhafari from the UAE Geriatric Healthcare Services Directorate of Kuwait’s Ministry of Health.

    Dr LEE Jong-wook Memorial Prize for Public Health

    Professor Helen Rees from South Africa is the 2025 winner of the Dr LEE Jong-wook Memorial Prize for Public Health

    The Dr LEE Jong-wook Memorial Prize for Public Health is awarded to a person or persons, an institution or institutions, a governmental or nongovernmental organization or organizations, who have made an outstanding contribution to public health.

    The WHO Executive Board awarded the 2025 Prize to Professor Helen Rees (South Africa) for her outstanding contribution to public health at the local, national, regional and global levels.

    Professor Helen Rees in one of Wits RHI’s Clinical Trial Laboratories. © 2015, Anthea Pokroy

    Professor Helen Rees founded the Wits Reproductive Health and HIV Institute (Wits RHI) in 1994, which has treated over 650 000 people living with HIV and which operates in 52 sites across South Africa with regional partnerships in 23 countries. In 2004, she created the Hillbrow Health Precinct, an innovative model that integrates urban regeneration, medical research and community-based health services, such as care for adolescents living with HIV and vaccination services, and that provides essential health services to some of Johannesburg’s most marginalized residents. Professor Rees has also made major research contributions covering HIV prevention, vaccines against human papillomavirus and COVID-19 and her research on HIV prevention, including pre-exposure prophylaxis and long-acting injectable treatments, has transformed HIV-prevention strategies for vulnerable populations.

    “Public health and human rights are intertwined, driven by the social determinants of health and the access people have to care – let us continue the struggle for health for all,” said Professor Helen Rees.

    Nelson Mandela Award for Health Promotion

    Dr Majed Zemni from Tunisia is the winner of the 2025 Nelson Mandela Award for Health Promotion

    The Nelson Mandela Award for Health Promotion is awarded to a person or persons, an institution or institutions, a governmental or nongovernmental organization or organizations, who or which has/have made a significant contribution to health promotion.

    The Executive Board awarded the 2025 Award to Dr Majed Zemni (Tunisia) for his outstanding contribution to health promotion.

    Dr Majed Zemni (front row, fourth from the right), Chief Executive Officer of the Office National de la Famille et de la Population (ONFP) with participants from various African countries at the international training session in the management of sexual and reproductive health programmes, as part of cooperation with the Japan International Cooperation Agency (JICA), Tunis 2013. © 2013, Office National de la Famille et de la Population

    Dr Majed Zemni has made extensive and impactful contributions to health promotion, particularly in his roles as President of the Tunisian Association of Forensic Medicine and Criminal Sciences and as President of the National Office of Family and Population (ONFP) of Tunisia. He helped issue key legal instruments, such as guidelines for forensic medicine and legislation relating to patients’ rights and medical liability. As part of the National Committee of Medical Ethics, he contributed to the development of protocols for managing the deceased that ensured human dignity during the COVID-19 pandemic. He worked at the Psychological Assistance Centre for Women and Children Victims of Violence. He also maintained the ONFP’s International Training and Research Centre as a WHO collaborating centre. His efforts have helped reorient health services with a patient-centred approach, with particular attention to people living with HIV and persons deprived of their liberty, and through multisectoral engagement involving other ministries and stakeholders in the development and implementation of programmes.

    “Health is a common denominator for all humanity, regardless of borders, races or policies,” said Dr Majed Zemni. “We must all strive to establish health security and a healthier future for all.”
     

    ————————-

    The call for nominations of candidates for each prize is sent out each year after closure of the World Health Assembly. Nominations can be made by national health administrations of a WHO Member State and by any former recipient of the prizes. At its 156th session in February 2025, the Executive Board designated the 2025 winners of the prizes, based on proposals made by a selection panels composed of Executive Board Members, and working independently for each prize.

    See more on public health prizes and awards web page.

    Read detailed information about the public health prizes and awards process.

    Full information can be found in this 78th World Health Assembly document (A78/INF./1).

    MIL OSI United Nations News –

  • MIL-OSI Security: U.S. Attorney’s Office Secures Guilty Plea From Gallup Man in Navajo Nation Shooting

    Source: US FBI

    ALBUQUERQUE – A Gallup man pleaded guilty today in federal court to shooting and seriously injuring another man during a confrontation on the Navajo reservation last year.

    According to court documents, on January 22, 2024, Arthur Chee Pat, 69, an enrolled member of the Navajo Nation, heard a commotion near his residence in Gallup and drove to investigate. Upon arriving at John Doe’s residence, where his son and three other men were gathered, Pat retrieved a firearm from his vehicle. He then fired three gunshots in the direction of one man and two more towards John Doe, striking Doe once in the knee.

    After the shooting, Pat fled the scene with his son. John Doe was initially transported to Gallup Indian Medical Center and later transferred to the University of New Mexico Hospital in Albuquerque for treatment. Law enforcement apprehended Pat at his residence shortly after the incident and recovered the handgun from his vehicle.

    Pat will remain on condition of release pending sentencing, which has not been scheduled. At sentencing, Pat faces up to 10 years in prison.

    U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.

    The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Department of Criminal Investigations. Assistant U.S. Attorney Zachary Jones is prosecuting the case.

    # # #

    MIL Security OSI –

  • MIL-OSI Security: Two Pulaski County Men Convicted After Cocaine Conspiracy Trial

    Source: US FBI

         LITTLE ROCK—After a three-day trial, a federal jury has found two Pulaski County men guilty of their involvement in a cocaine distribution conspiracy. James “Richie Rich” Richards, 52, of Wrightsville, and Isaac May, 42, of Sweet Home, were found guilty on all counts when the jury returned their verdict late Wednesday evening. United States District Judge James M. Moody, Jr., presided over the trial, and Judge Moody will sentence Richards and May at a later date. 

          Both Richards and May were charged with and convicted of one count of conspiracy to distribute five kilograms or more of cocaine and several counts of using a phone to facilitate a drug trafficking crime. Richards was also convicted of conspiracy to distribute 28 grams or more of crack cocaine, and one count of distribution of cocaine.

          Richards and May were originally charged in August 2018 with nine other defendants, all of whom have already pleaded guilty. The investigation revealed that in December 2017, Richards began supplying May with cocaine that Richards obtained from supplier and codefendant John Garner. In January 2018, Garner began dealing with May directly. Garner supplied May with cocaine two to three times per week until April of 2018.

          Garner had a longer relationship with Richards and began using Richards’ home in Little Rock as a base of distribution in 2010. Garner supplied Richards with cocaine on a daily basis, in significant amounts large enough for Richards to distribute to other sellers, including kilogram and ounce quantities. A confidential informant recorded transactions in which he bought cocaine from Richards, and Richards discussing his cocaine distribution activities, and those recordings were played at trial.

          At trial, Garner testified against his former customers. He stated that the approximately seven kilograms of cocaine found in his home and at his storage unit during the execution of a search warrants in June 2018 was part of the supply he was using to distribute to Richards and May, among other customers. Had Garner not been arrested, he would have continued distributing to Richards and May from this supply.

          In July 2020, Garner was sentenced to 180 months in prison. Other codefendants who have been sentenced in the case include Larry Clark, Jr. – 262 months, Antwan Hardaway – 12 months and 1 day, and Bridgette Williams – 36 months. All remaining defendants, including Richards and May, are awaiting sentencing.

          The statutory penalty for conspiracy to distribute more than five kilograms of cocaine is not less than 10 years and not more than life imprisonment, a fine of not more than $10 million, and not less than five years of supervised release. The statutory penalty for distribution of less than 500 grams of cocaine is not more than 20 years’ imprisonment, a fine of not more than $1 million, and not less than three years of supervised release. The statutory penalty for using a phone in furtherance of a drug trafficking crime is not more than four years’ imprisonment, a fine of not more than $250,000, and not more than one year of supervised release. The investigation was conducted by the FBI with assistance from the Arkansas State Police and Arkansas National Guard Counter Drug. The case was prosecuted by Assistant United States Attorneys Julie Peters and Chris Givens.

         This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

    # # #

    This news release, as well as additional information about the office of the

    United States Attorney for the Eastern District of Arkansas, is available online at

    https://www.justice.gov/edar
     

    Twitter:

    @EDARNEWS

    MIL Security OSI –

  • MIL-OSI Security: White Supremacist President Sentenced to 35 Years in Violent Racketeering Case

    Source: US FBI

          LITTLE ROCK—Wesley Gullett, the president of a white supremacist organization which sold multiple kilograms of methamphetamine and committed numerous violent acts—including attempted murder—will spend the more than three decades in federal prison.

          On Wednesday, United States District Court Judge Brian S. Miller sentenced Gullett, 31, of Russellville, to 35 years imprisonment, with five years of supervised release to follow, for Gullett’s leadership role in a violent drug conspiracy. There is no parole in the federal system. Gullett was president of New Aryan Empire (NAE), a white supremacist group founded by inmates in the Arkansas Department of Corrections.

          Gullett was originally charged in October 2017, and a federal grand jury charged him along with 51 other defendants in a Second Superseding Indictment in September 2019. On February 3, 2021, Gullett pleaded guilty to conspiracy to commit racketeering and conspiracy to possess methamphetamine with intent to distribute. In his plea agreement, Gullett admitted to solicitation to commit murder and attempted murder, among other violent acts.

          At Wednesday’s hearing, before imposing the sentence, Judge Miller heard details of how Gullett attempted to murder Bruce Wayne Hurley, an individual who had purchased methamphetamine from NAE associates. Gullett attempted to murder Hurley because he believed Hurley was acting as an informant for law enforcement. Gullett also solicited other NAE members to murder Hurley.

          In addition, the NAE, under the direction of Gullett, carried out other retaliatory acts against those who they believed had provided information to law enforcement. Members of NAE retaliated against one alleged witness by kidnapping him, having people take turns beating him, branding his face with a hot knife, and having a dog bite him. Another alleged witness was kidnapped twice, beaten, and stabbed. For violating NAE’s code, the organization physically assaulted and battered, “X’ed” them out (also referred to as taking their patch), or killed violating members. 

          “This defendant used his corrupt white supremacist organization to commit heinous crimes of violence,” said Jonathan D. Ross, Acting United States Attorney for the Eastern District of Arkansas. “These despicable acts, which included trying to murder a witness, will now appropriately be punished with 35 years in prison, where this defendant can no longer wreak havoc and poison our community.”

          In addition to the violent acts, law enforcement officials investigated the NAE’s methamphetamine trafficking organization. During the coordinated federal and state investigation, law enforcement agents made 59 controlled purchases of methamphetamine, seizing more than 25 pounds of methamphetamine, as well as 69 firearms and more than $70,000 in drug proceeds.

          Three remaining defendants of the original 51 charged are awaiting trial, which is currently set for September 7, 2021. One defendant is still a fugitive, and all other defendants have pleaded guilty.

          Acting U.S. Attorney Ross, together with Drug Enforcement Administration Assistant Special Agent in Charge Jarad O. Harper, and Bureau of Alcohol, Tobacco, Firearms, and Explosives Acting Resident Agent in Charge Clayton Merrell, announced today’s sentence.

          The investigation was conducted by FBI, the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Drug Enforcement Administration, in partnership with the Pope County Sheriff’s Office, Fifth Judicial District Drug Task Force, Russellville Police Department, Arkansas State Police, Conway Police Department, and United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorneys in the Eastern District of Arkansas with assistance from the Department of Justice Criminal Division’s Organized Crime and Gang Section.

    # # #

    This news release, as well as additional information about the office of the

    United States Attorney for the Eastern District of Arkansas, is available online at

    https://www.justice.gov/edar

    Twitter:

    @EDARNEWS

    MIL Security OSI –

  • MIL-OSI Security: DOJ Announces Coordinated Law Enforcement Action to Combat Health Care Fraud Related to COVID-19

    Source: US FBI

    Federal charges in the Western District of Arkansas involve wire fraud and money laundering related to the theft of federal healthcare funds

    FORT SMITH – The Department of Justice today announced criminal charges against 14 defendants, including 11 newly-charged defendants and three who were charged in superseding indictments, in seven federal districts across the United States for their alleged participation in various health care fraud schemes that exploited the COVID-19 pandemic and resulted in over $143 million in false billings.

    “The multiple health care fraud schemes charged today describe theft from American taxpayers through the exploitation of the national emergency,” said Deputy Attorney General Lisa O. Monaco. “These medical professionals, corporate executives, and others allegedly took advantage of the COVID-19 pandemic to line their own pockets instead of providing needed health care services during this unprecedented time in our country. We are committed to protecting the American people and the critical health care benefits programs created to assist them during this national emergency, and we are determined to hold those who exploit such programs accountable to the fullest extent of the law.”

    As part of the national takedown, Billy Joe Taylor, 42, of Lavaca, Arkansas, was charged by criminal complaint with health care fraud in connection with an alleged scheme to defraud the United States of over $88 million, including over $42 million in false and fraudulent claims during the COVID-19 health emergency that were billed in combination with claims that were submitted for testing for COVID-19 and other respiratory illnesses. Taylor, the owner and operator of Vitas Laboratories LLC and Beach Tox LLC, two testing laboratories, allegedly used access to beneficiary and medical provider information from prior laboratory testing orders to submit fraudulent claims for urine drug tests and other laboratory tests, including respiratory pathogen panel and COVID-19 tests, that were not actually ordered or performed. The complaint also alleges that hundreds of claims were submitted for beneficiaries after they had died or otherwise ceased providing samples.

    “While the COVID-19 pandemic was raging, and Americans were suffering from the economic and health crisis brought on by this pandemic, these defendants were allegedly scheming to steal millions of dollars set aside to help ailing Americans through COVID-19 testing and other federal health-care programs,” said Acting U.S. Attorney David Clay Fowlkes.  “This case demonstrates the importance of investigating and prosecuting those who would seek to line their own pockets by stealing funds set aside to help those struggling with the symptoms of COVID-19 and other health ailments.”  

    Additionally, the Center for Program Integrity, Centers for Medicare & Medicaid Services (CPI/CMS) separately announced today that it took adverse administrative actions against over 50 medical providers for their involvement in health care fraud schemes relating to COVID-19 or abuse of CMS programs that were designed to encourage access to medical care during the pandemic.

    “Medical providers have been the unsung heroes for the American public throughout the pandemic,” said FBI Director Christopher Wray. “It’s disheartening that some have abused their authorities and committed COVID-19 related fraud against trusting citizens. The FBI, along with our federal law enforcement and private sector partners, are committed to continuing to combat healthcare fraud and protect the American people.”

    The defendants in the cases announced today are alleged to have engaged in various health care fraud schemes designed to exploit the COVID-19 pandemic. For example, multiple defendants offered COVID-19 tests to Medicare beneficiaries at senior living facilities, drive-through COVID-19 testing sites, and medical offices to induce the beneficiaries to provide their personal identifying information and a saliva or blood sample. The defendants are alleged to have then misused the information and samples to submit claims to Medicare for unrelated, medically unnecessary, and far more expensive laboratory tests, including cancer genetic testing, allergy testing, and respiratory pathogen panel tests. In some cases, and as alleged, the COVID-19 test results were not provided to the beneficiaries in a timely fashion or were not reliable, risking the further spread of the disease, and the genetic, allergy, and respiratory pathogen testing was medically unnecessary, and, in many cases, the results were not provided to the patients or their actual primary care doctors.  The proceeds of the fraudulent schemes were allegedly laundered through shell corporations and used to purchase exotic automobiles and luxury real estate.

    “It’s clear fraudsters see the COVID-19 pandemic as a money-making opportunity — creating fraudulent schemes to victimize beneficiaries and steal from federal health care programs,” said Deputy Inspector General for Investigations Gary L. Cantrell of  Health and Human Services – Office of Inspector General (HHS-OIG). “Our agency and its law enforcement partners are aggressively and effectively investigating these egregious crimes, which is made equally clear given the results of this takedown. We will continue to support the unprecedented COVID-19 public health effort by holding accountable people who use deceptive tactics to profit from the pandemic.”

    In another type of COVID-19 health care fraud scheme announced today, defendants are alleged to have exploited policies that were put in place by CMS to enable increased access to care during the COVID-19 pandemic. For example, pursuant to the COVID-19 emergency declaration, telehealth regulations and rules were broadened so that Medicare beneficiaries could receive a wider range of services from their doctors without having to travel to a medical facility. The cases announced today include first in the nation charges for allegedly exploiting these expanded policies by submitting false and fraudulent claims to Medicare for sham telemedicine encounters that did not occur. As part of these cases, medical professionals are alleged to have offered and paid bribes in exchange for the medical professionals’ referral of medically unnecessary testing.

    The law enforcement action today also includes the third set of criminal charges related to the misuse of Provider Relief Fund monies. The Provider Relief Fund is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted March 2020 designed to provide needed medical care to Americans suffering from COVID-19.

    The Fraud Section is prosecuting the cases in the following districts: Western District of Arkansas, Northern District of California, Middle District of Louisiana, Central District of California, Southern District of Florida, District of New Jersey, and the Eastern District of New York.

    Today’s enforcement actions were led and coordinated by Assistant Chief Jacob Foster and Trial Attorneys Rebecca Yuan and Gary A. Winters of the National Rapid Response Strike Force of the Health Care Fraud Unit of the Criminal Division’s Fraud Section, in conjunction with the Health Care Fraud Unit’s Medicare Fraud Strike Forces (MFSF) in Miami, Los Angeles, the Gulf Coast, and Brooklyn, as well as the U.S. Attorneys’ Offices for the Northern District of California, Western District of Arkansas, and Middle District of Louisiana.

    The case here in the Western District of Arkansas is being prosecuted by Senior Litigation Counsel James Hayes and Trial Attorney D. Keith Clouser of the National Rapid Response Strike Force, and Assistant U.S. Attorney Kenneth Elser of the U.S. Attorney’s Office for the Western District of Arkansas.

    The MFSF is a partnership among the Criminal Division, U.S. Attorneys’ Offices, the FBI and HHS-OIG. In addition, U.S. Postal Inspection Service, Internal Revenue Service Criminal Investigation, Veterans Affairs Office of Inspector General, Department of Defense Office of Inspector General, Federal Deposit Insurance Corporation, Louisiana Medicaid Fraud Control Unit, and other federal and state law enforcement agencies participated in the law enforcement action.

    The law enforcement action was brought in coordination with the Health Care Fraud Unit’s COVID-19 Interagency Working Group, which is chaired by the National Rapid Response Strike Force and organizes efforts to address illegal activity involving health care programs during the pandemic.

    The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

    The Department of Justice needs the public’s assistance in remaining vigilant and reporting suspected fraudulent activity. To report suspected fraud, contact the National Center for Disaster Fraud (NCDF) at (866) 720-5721 or file an online complaint at: https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form. Complaints filed will be reviewed at the NCDF and referred to federal, state, local, or international law enforcement or regulatory agencies for investigation.

    To learn more about the department’s COVID response, visit: https://www.justice.gov/coronavirus. For further information on the Criminal Division’s enforcement efforts on PPP fraud, including court documents from significant cases, visit the following website: https://www.justice.gov/criminal-fraud/ppp-fraud.

    Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov

    An indictment, complaint, or information is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    ###

    MIL Security OSI –

  • MIL-OSI Security: Two Arkansas Physicians Sentenced to a Total of 150 Months in Federal Prison for Prescription Fraud

    Source: US FBI

    FORT SMITH – Fort Smith physician and Rogers physician were sentenced today on one count each of Distribution of a Controlled Substance without an Effective Prescription. The Honorable Judge P. K. Holmes III presided over the sentencing hearings in the U.S. District Court in Fort Smith.

    According to court documents, Cecil W. Gaby, 71, of Fort Smith,  a licensed physician in the State of Arkansas, pleaded guilty on December 18, 2019 to acting and intending to act outside the usual course of professional practice without a legitimate medical purpose in dispensing a Schedule II controlled substance namely, oxycodone, to an individual, thereby causing the death of the individual. Between January 2016 and July 2018, Gaby was an owner and operator of the Hinderliter Pain Clinic in Barling, Arkansas and from July 2018 through November 2018, was owner and operator of the Gaby Medical Clinic in Fort Smith, Arkansas. From January 2016 through November 2018, Gaby issued more than 11,000 prescriptions for opioids and/or benzodiazepines. Gaby prescribed approximately 1,156,044 dosage units of Schedule II controlled substances to 347 patients (3,332 pills per patient over the course of 2 years); 98% of Gaby’s patients were prescribed at least one opioid (hydrocodone, oxycodone, methadone, etc.); 94% of Gaby’s patients received either multiple narcotics or a combination of narcotics and sedatives; and 27% of Gaby’s patients were age 40 or younger. Evidence in the case revealed that Gaby issued a large number of prescriptions without a legitimate medical purpose and not in the usual course of professional practice. From 2016 through 2018, several of Gaby’s patients died of drug overdose or related causes. As part of his plea, Gaby admitted that prescriptions he issued directly resulted in the death of one of his patients.  Gaby was sentenced to 120 months in federal prison followed by 3 years of supervised release.

    Robin Ann Cox, 64, of Rogers, was employed by the Arkansas Medical Clinic (AMC) in Rogers, Arkansas. Cox and the owner of AMC contacted the DEA by telephone to report that prescriptions from Cox‘s previous employment had been fraudulently written and filled. Cox specifically identified a prescription for a patient written and filled on May 17, 2019, and a prescription for a patient dated May 19, 2019 and filled on May 20, 2019. During the investigation into these prescriptions, the DEA discovered that the prescriptions were for Schedule II opioid medications, and that Cox had written one of the prescriptions while meeting with the patient in the parking lot of a restaurant in Fort Smith, Arkansas, in the Western District of Arkansas, Fort Smith Division. The prescription was not written in conjunction with an appropriate medical examination and therefore was issued outside the course of a legitimate medical practice. Cox was sentenced to 30 months in federal prison followed by 3 years of supervised release

    “The abuse of opioids and other pain medications is an epidemic that is destroying the lives of many people across the Western District of Arkansas.  We will continue to use all the investigation and prosecution tools available to us to identify and prosecute those who are responsible for the over-prescription of these dangerous drugs.  It is my sincere hope that these cases today send a strong message to all of those in our District who would consider operating a “pill mill” or otherwise seeking to profit from the over-prescribing of opioid drugs and other pain-killers,” said Acting U.S. Attorney David Clay Fowlkes.

    “The abuse of prescription drugs remains a significant problem in our communities.  This abuse often leads to addiction, shattered lives, and even death.  For the health and safety of our citizens, DEA and our law enforcement partners in Arkansas and beyond will continue to target those who illegally distribute these potentially dangerous drugs.  It is particularly disappointing when trusted medical professionals are engaged in the diversion of controlled substances.  We hope that the convictions and sentencings of these Physicians will serve as a reminder to anyone who might illegally divert pharmaceuticals that they will be held accountable for the harm they cause,” said DEA Special Agent in Charge Brad L. Byerley.

    The Drug Enforcement Administration (DEA), DEA Diversion Little Rock, Federal Bureau of Investigation (FBI), the United States Department of Health and Human Services Office of Inspector General (HHS), Arkansas State Medical Board, the Fort Smith Police Department, the Springdale Police Department, and the Rogers Police Department investigated the case.

    Special Assistant U.S. Attorney Anne Gardner prosecuted the case for the United States.

    Cox’s prosecution is part of the Western District of Arkansas’ Operation Pillusional, which is part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program.  The OCDETF program is the centerpiece of the Department of Justice’s drug supply reduction strategy.  OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations.  Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement.  The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s illicit drug supply.

    MIL Security OSI –

  • MIL-OSI Security: St. Lawrence County Man Sentenced for Sexual Exploitation of a Child

    Source: US FBI

    Skyler Keleher to Serve 30 Years in Federal Prison for Livestreaming his Abuse of a 2-Year-Old Victim

    SYRACUSE, NEW YORK – Skyler Keleher, age 23, of St. Lawrence County, was sentenced today to serve 30 years in federal prison for his conviction on two counts of Sexual Exploitation of a Child.  United States Attorney Carla B. Freedman, Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and New York State Police Superintendent Steven G. James made the announcement.

    In his prior guilty plea, Keleher admitted that on at least two separate occasions in 2017 he sexually abused a two-year-old child and livestreamed the abuse to others over the Internet, using Facebook Messenger and Facebook Live.  Since then, video recordings of the abuse have been widely circulated over the Internet, and recovered by law enforcement in at least 26 separate investigations across the United States and abroad.  While the videos were first documented by law enforcement in 2018, Keleher’s identity was not confirmed until 2022, at which time he was arrested by authorities. 

    Following his term of imprisonment, Keleher will be placed on a term of supervised release for life, and will be required to register as a sex offender.

    This case was investigated by FBI Operation Rescue Me, the FBI’s Albany Division Child Exploitation and Human Trafficking Task Force, and the New York State Police, Troop B.  Assistant U.S. Attorney Lisa M. Fletcher, Project Safe Childhood Coordinator for the Northern District of New York, prosecuted the case.

    Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

    MIL Security OSI –

  • MIL-OSI Security: Latham Man Arrested for Receipt of Child Pornography

    Source: US FBI

    ALBANY, NEW YORK – Eduardo Abreu, age 48, of Latham, New York, was arrested yesterday on a criminal complaint charging him with receipt of child pornography. 

    United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

    The criminal complaint alleges that on or about August 21, 2024, Abreu received approximately 225 images of child pornography over the internet.  The charges in the complaint are merely accusations.  The defendant is presumed innocent unless and until proven guilty.

    Abreu appeared yesterday in Albany before United States Magistrate Judge Christian F. Hummel, and ordered detained pending a detention hearing scheduled for Thursday, August 29. 

    Abreu faces at least 15 years and up to 40 years in prison, a maximum fine of $250,000, and a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Abreu may also be ordered to pay restitution to the victims of his offense and forfeit any devices used in the offense. Abreu would also have to register as a sex offender upon his release from prison.

    The FBI’s Child Exploitation and Human Trafficking Task Force is investigating the case. Assistant U.S. Attorney Allen J. Vickey is prosecuting the case.

    Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

    MIL Security OSI –

  • MIL-OSI Security: Tonawanda Man Pleads Guilty to Production of Child Pornography

    Source: US FBI

    BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that Michael E. Swain, 36, of Tonawanda, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to production of child pornography, carries a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, and a $250,000 fine.

    Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that between October 20 and November 1, 2021, Swain coerced five minor victims to engage in sexually explicit conduct for the purpose of producing visual depictions. Specifically, Swain communicated with a 15-year-old minor female who resided in Colorado using Discord, a social media platform. The communications included sexually graphic conversations, during which Swain requested that the minor female take sexually explicit videos and images and send them to him. In addition, Swain engaged in numerous sexual communications with the minor female from approximately 2019 to 2022, during which other sexually explicit images and videos were sent to Swain. On February 28, 2023, the FBI executed a search warrant at Swain’s residence and seized a desktop computer tower, a laptop computer, and an external hard drive, all of which were found to contain child pornography.

    The plea is the result of an investigation by the Tonawanda Police Department, under the direction of Chief James Stauffiger, the Federal Bureau of Investigation Buffalo Office Child Exploitation Human Trafficking Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia, and the New York State Police, under the direction of Stanley Edwards III.     

    Sentencing is scheduled for December 4, 2024, at 2:00 p.m. before Judge Vilardo.

    # # # #

    MIL Security OSI –

  • MIL-OSI Security: Five Charged with Operating Cockfighting Events in Inland Empire

    Source: US FBI

    RIVERSIDE, California – Four Inland Empire residents have been arrested on a federal criminal complaint alleging they organized and ran cockfighting events in San Bernardino County.

    The following defendants, who were arrested Sunday at a cockfighting event, are charged with aiding, abetting, inducing, and willfully causing another person to sponsor and exhibit an animal in an animal fighting venture and are expected to make their initial appearances this afternoon in United States District Court in Riverside:

    • Isidro Chaparro Sanchez, 59, of Corona;
    • Luis Octavio Angulo, 61, of Rialto;
    • Sergio Jimenez Maldonado, 51, of San Bernardino; and
    • Eva Anilu Pastor Uriostegui, 53, of Moreno Valley.

    Law enforcement is looking for Cirilo Esquivel Alcantar, 56, of San Bernardino, who also is charged in this case.

    According to an affidavit filed with the complaint, the defendants organized and facilitated cockfighting events in Muscoy. The defendants held events on Sundays during the cockfighting “season,” which generally runs from January to August. Individuals brought roosters to fight (i.e., cockfighters) and spectators attended the events, which at times drew more than 100 attendees. 

    Attendees parked – at the cost of $20 – at a different location nearly one mile away from the event location. Attendees were then shuttled to the cockfighting location, where they paid another fee – usually $40 – to enter the arena where the cockfights took place. Attendees could also place bets on the cockfights and participate in a raffle. 

    Cockfighters paid a fee to enter their roosters into fights – $1,000 for four roosters – and then entered the fighting arena with their roosters when it is their turn to fight. Several cockfights took place on a given day. Before the fights, a sharp blade, known as a “gaff” and usually curved and approximately 1.5 inches in length, was often attached to each rooster’s leg. At times, the fights ended in the death of one or both roosters.

    A criminal complaint is merely an allegation, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

    If convicted, the defendants would each face a statutory maximum sentence of five years’ imprisonment.

    The FBI is investigating this matter.

    Assistant United States Attorneys Cory L. Burleson of the Riverside Branch Office and Dennis Mitchell of the Environmental Crimes and Consumer Protection Section are prosecuting this case.

    MIL Security OSI –

  • MIL-OSI Security: Ventura Men Receive Prison Terms for Crime Spree in Which Taco Truck Vendor Extorted, Small Businesses Robbed Last Year

    Source: US FBI

    LOS ANGELES – Two Ventura County men were sentenced today to federal prison terms for their roles in a crime spree late last year in which a taco truck vendor was extorted, two small businesses were robbed, and for fraudulently using debit and credit cards from a victim robbed at gunpoint.

    Oscar Aguirre Silva, 31, of Ventura, was sentenced to 72 months (six years) in federal prison by United States District Judge Hernán D. Vera, who also ordered him to pay $2,941 in restitution.

    Silva pleaded guilty on April 25 to one count of interference with commerce by extortion (Hobbs Act), two counts of interference with commerce by robbery (Hobbs Act), three counts of bank fraud, two counts of attempted bank fraud, and two counts of aggravated identity theft.

    At a separate hearing today, Judge Vera sentenced Edward Donaldo Ramirez Martinez, 28, of Ventura, a co-defendant, to 54 months (4½ years) in federal prison. Ramirez was ordered to pay $1,597 in restitution.

    Ramirez pleaded guilty on April 25 to one count of aggravated identity theft and one count of being a felon in possession of ammunition.

    “The victims in this case were people just trying to make a living by operating a food truck when they were allegedly robbed at gunpoint,” said United States Attorney Martin Estrada. “Violent gun crime tears at the fabric of our society. Punishing those who engage in violent gun offenses is and will continue to be a priority for my office. Our community deserves no less.”

    On November 6, 2023, Silva threatened violence to extort a taco truck vendor in Oxnard. Four days later, Silva robbed a woman at gunpoint and stole her iPhone, and her purse, which contained a credit card and a debit card in the victim’s name as well as a debit card in the name of another victim. Ramirez served as the getaway driver during this armed robbery. Both men then traveled to a Walmart store in Ventura, where they used the stolen cards to purchase $524 worth of merchandise. Later, Silva and another co-defendant, David Ray Reyes, 30, of Ventura, then used and attempted to use the stolen cards to purchase other items at an Oxnard smoke shop.

    On November 25 and 26, 2023, Silva robbed two Oxnard businesses – a smoke shop and a grocery outlet.

    Finally, on December 2, 2023, Ramirez, while under the influence of methamphetamine, possessed an assault rifle that did not bear a serial number – commonly known as a “ghost gun.” The firearm carried four rounds of ammunition. Ramirez was not legally permitted to possess the ghost gun or the ammunition because of his February 2020 felony conviction in Ventura County Superior Court for carrying a loaded firearm.

    Reyes pleaded guilty on March 6 to one count of attempted bank fraud, one count of bank fraud, and two counts of aggravated identity theft. On June 6, Judge Vera sentenced Reyes to 26 months in federal prison.

    All three defendants remain in federal custody.

    Operation Safe Cities establishes strategic enforcement priorities with an emphasis on prosecuting the most significant drivers of violent crime. Across this region, the most damaging and horrific crimes are committed by a relatively small number of particularly violent individuals. This strategic enforcement approach is expected to increase the number of arrests, prosecutions and convictions of recidivists engaged in the most dangerous conduct. It is designed to improve public safety across the region by targeting crimes involving illicit guns, prohibited persons possessing firearms, or robbery crews that cause havoc and extensive losses to retail establishments.

    The Ventura County Violent Crime Task Force, which includes the FBI, the Oxnard Police Department, the Ventura County Sheriff’s Office, and the Ventura Police Department, conducted this investigation.

    Assistant United States Attorney Lyndsi C. Allsop of the Violent and Organized Crime Section prosecuted this case.

    MIL Security OSI –

  • MIL-OSI Security: Compton Man Sentenced to More Than 10 Years in Prison for Leading Ring That Trafficked Cocaine from California to Alaska

    Source: US FBI

    LOS ANGELES – A Compton man was sentenced today to 127 months in federal prison for leading a Southern California-based drug trafficking organization that shipped kilogram quantities of cocaine to Alaska via commercial flights and U.S. mail.

    Raul Cisneros Jr., 46, was sentenced by United States District Judge Fernando M. Olguin.

    Cisneros pleaded guilty May 9 to one count of possession with intent to distribute cocaine. He has been in federal custody since October 2020 and was the final defendant to plead guilty to criminal charges in this case.

    From at least July 2014 to August 2016, Cisneros managed the operations of a drug trafficking outfit that sold cocaine and methamphetamine to customers.

    In October 2015, law enforcement stopped Cisneros in his car while he was en route to an accomplice’s home to pick up money. In his car, Cisneros possessed approximately $5,003 in cash, which were drug proceeds. He also possessed approximately 10 kilograms (22.1 pounds) of cocaine packaged in five separate bundles, which he intended to sell to customers.

    After obtaining a search warrant for Cisneros’ home, law enforcement seized from Cisneros’ kitchen cabinets approximately 30.7 kilograms (66.1 pounds) of cocaine, approximately 167.7 grams of crack cocaine, and approximately 3.6 kilograms (1.1 pounds) of methamphetamine. Law enforcement also found hundreds of used empty green cellophane wrappers and a money counter, which Cisneros used to facilitate his drug distribution operation.

    Law enforcement also seized from Cisneros’ kitchen four firearms and 72 rounds of ammunition during this search.

    In total, agents recovered $568,357 in cash proceeds from drug deals and – in the trunk of Cisneros’ white Honda Accord vehicle, which was parked in the driveway of his residence – approximately 7.02 kilograms (15.5 pounds) of cocaine wrapped in seven packages of green cellophane stashed inside a bag. Cisneros intended to distribute the cocaine to others as part of his drug trafficking operation.

    Federal prosecutors secured eight convictions in this matter.

    The High Intensity Drug Trafficking Area (HIDTA) Southern California Drug Task Force (SCDTF) consisting of the FBI and the Drug Enforcement Administration investigated this matter.  Substantial assistance was provided by the Los Angeles County Sheriff’s Department.  This investigation was conducted with the support of the Organized Crime Drug Enforcement Task Force (OCDETF).

    Assistant United States Attorneys Kathy Yu, Chief of Ethics and Post-Conviction Review, and Chelsea Norell of the Violent and Organized Crime Section prosecuted this case.

    This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

    MIL Security OSI –

  • MIL-OSI Security: Former Syrian Prison Official Charged with Immigration Fraud

    Source: US FBI

    LOS ANGELES – A former Syrian government official was indicted today for allegedly lying to United States immigration authorities about his time running a Syrian prison where prisoners, including political dissidents, were physically mistreated.

    Samir Ousman Alsheikh, 72, of Lexington, South Carolina, is charged with one count of obtaining, using, and possessing a green card that was procured through false statements and one count of attempted naturalization fraud.

    Alsheikh was arrested on a federal criminal complaint on July 10 at Los Angeles International Airport and remains in federal custody. His arraignment is scheduled for August 16 in United States District Court in downtown Los Angeles.

    “Samir Alsheikh attempted to settle in Southern California after allegedly participating in grave abuses while part of the Assad regime in Syria,” said United States Attorney Martin Estrada. “His indictment sends a clear message that those who seek immigration benefits in our country after having previously committed human rights violations will find no shelter here.”

    According to court documents, Alsheikh was a Syrian government official who held a variety of positions in the Syrian police and the Syrian state security apparatus, and was associated with the Syrian Ba’ath Party, the totalitarian party that ruled Syria.

    He allegedly served as the head of Damascus Central Prison (colloquially known as “Adra Prison”) from approximately 2005 to 2010. As described in the indictment, political dissidents and other prisoners were severely physically abused at Adra Prison during Alsheikh’s tenure there. The indictment further alleges that Alsheikh was subsequently appointed governor of the province of Deir Ez-Zour by Syrian President Bashar al-Assad.

    Alsheikh allegedly concealed his employment at the prison, persecution of any person because of political opinion, and involvement in harming others when he applied for U.S. citizenship in 2023. He allegedly made similar false statements when applying for a visa that enabled him to enter the United States in 2020, become a lawful permanent resident, and obtain a green card.

    An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    If convicted, Alsheikh faces a maximum penalty of 10 years in federal prison.

    HSI and the FBI are investigating the case, with support from U.S. Citizenship and Immigration Services and the HSI-led Human Rights Violators and War Criminals Center (HRVWCC).

    Assistant United States Attorney Joshua O. Mausner of the Violent and Organized Crime Section and Justice Department Trial Attorneys Patrick Jasperse and Alexandra Skinnion of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case. The Justice Department’s Office of International Affairs also provided assistance.

    Members of the public who have information about human rights violators in the United States are urged to contact U.S. law enforcement through the FBI tip line at 1-800-CALL-FBI or the HSI tip line at 1-866-DHS-2-ICE, or complete the FBI online tip form or the ICE online tip form.

    MIL Security OSI –

  • MIL-OSI Security: Owner of South Gate-Based Tattoo Removal Business Pleads Guilty to Health Care Fraud Scheme That Recruited Paraplegics

    Source: US FBI

    LOS ANGELES – The owner of a tattoo removal business in South Gate pleaded guilty today to federal criminal charges for recruiting paraplegics in a health care fraud scheme that netted more than $1.7 million and for cheating on his taxes.

    Joseph Tusia, 60, of Leominster, Massachusetts, pleaded guilty to a two-count information charging him with health care fraud and tax evasion.

    According to his plea agreement, Tusia operated a laser tattoo removal business in South Gate and 10 durable medical equipment supply companies (DMEs) in California, Nevada, and Massachusetts. Tusia controlled the tattoo removal companies and the DMEs but intentionally withheld his name from bank accounts and state registrations to evade tax liability.

    On December 30, 2015, Tusia and a co-schemer submitted an application to Anthem Blue Cross (“Anthem”) for a small group health insurance plan. Anthem’s small group plan permitted benefits and health coverage for permanent employees who worked full-time. Despite the eligibility requirements, Tusia caused to be submitted to Anthem the names of nine individuals purported to be full-time employees of Tattoo Removal and a person who was a dependent of the Tusia. None of these purported employees were employed by Tattoo Removal or eligible for health insurance coverage under Tattoo Removal’s plan with Anthem. 

    According to his plea agreement, Tusia identified the Purported Tattoo Removal Employees from his friends and associates who were paraplegic and required medical supplies, knowing and expecting that the Purported Tattoo Removal Employees would purchase their medical supplies from the DMEs that were controlled by Tusia and his associates.

    From March 2016 to June 2020, Tusia and his co-schemers submitted fraudulent claims to Anthem on behalf of the DMEs for medical supplies provided to the purported employees, knowing that none of them were eligible for coverage. As a result of these fraudulent claims, Anthem paid the DMEs controlled by Tusia approximately $1,731,215.

    Tusia also admitted in his plea agreement to knowingly and willfully failing to report income he received from the DMEs in tax years 2017 through 2020, totaling more than $1,573,644. Tusia admitted that he failed to pay tax to the IRS and that he took affirmatives steps to evade paying taxes, such as by creating the DMEs and opening bank accounts for the DMEs in the names of his associates and co-schemers.

    United States District Judge George Wu scheduled a December 5 sentencing hearing, at which time Tusia will face a statutory maximum sentence of 10 years in federal prison on the health care fraud count, and up to five years in federal prison for the tax evasion count.

    The United States Department of Labor – Employee Benefits Security Administration, the FBI, and IRS Criminal Investigation are investigating this matter.

    Assistant United States Attorney Jeff Mitchell of the Major Frauds Section is prosecuting this case.

    MIL Security OSI –

  • MIL-OSI Security: Grand Jury Charges 37 Florencia 13 Members and Associates with Federal Crimes, Including Three Murders, One of Them a Beating Death

    Source: US FBI

    LOS ANGELES – Federal and local law enforcement officials today announced the unsealing of federal grand jury indictments charging a total of 37 members and associates of the South Los Angeles-based Florencia 13 (F13) street gang, alleging a series of crimes, including fentanyl trafficking, extortion, and three murders, including that of a man beaten to death outside a bar in the gang’s “territory.”

    Today’s takedown resulted in the arrests of 23 F13 members and associates who are expected to be arraigned on 11 indictments this afternoon in United States District Court in downtown Los Angeles. Six of the defendants were already in state or federal custody, and authorities continue to search for eight other defendants charged in these cases, including multiple defendants currently believed to be fugitives in Mexico.

    As part of this investigation, law enforcement has seized approximately 21 pounds of methamphetamine, nine pounds of fentanyl, and 6.5 pounds of heroin. Authorities also have seized 25 firearms and approximately $70,000 in cash connected to this investigation.

    “Through murder, drug trafficking, violent robberies, and other criminal behavior, street gangs bring devastation upon our communities,” said United States Attorney Martin Estrada. “We must stand united against gang violence. Today’s arrests and seizures demonstrate that we will be relentless in combating these criminal organizations.”

    “Florencia-13 is known for its barbaric tactics which, tragically, resulted in several murders alleged in the indictment,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field office. “Residents of the community in which Florencia-13 operates deserve to live their lives without fear from violence and extortion, and this joint investigation demonstrates our shared commitment to that goal.”

    “Today’s coordinated take down of gang members associated with the ‘Florencia 13’ criminal street gang creates safer neighborhoods by removing dangerous individuals from our communities and disrupting their criminal network that fuels this violence,” said Sheriff Robert G. Luna. “By removing key offenders from our streets who instill fear and terrorize our communities, we are taking decisive action to restore safety and enhance the quality of life for all residents. Our commitment to reducing gang violence remains unwavering as we work together to build safer, stronger communities.”

    The bulk of the charges in today’s takedown comes from two federal grand jury indictments targeting Florencia 13. The first indictment charges 19 defendants – including Celerino Jaramillo, 30, a.k.a. “Bizzy,” of South Los Angeles, a “shot caller” in one of F13’s cliques – with conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act.

    Among a series of alleged racketeering-related crimes, during one incident on October 17, 2022, a mob of F13 members – including Jonathan Reyes, 19, a.k.a. “Creeper,” of South Los Angeles – beat one victim to death in the early morning outside a bar in the Florence-Firestone neighborhood of Los Angeles. The victim repeatedly was stomped, kicked, and punched, and beaten with a baseball bat.

    The indictment further alleges that Jaramillo and co-defendant Oscar Hernandez, 30, a.k.a. “Drex,” of South Los Angeles, on June 19, 2023, murdered a victim identified in court documents as “R.A.,” an F13 member who had violated the gang’s rules. The day after R.A.’s was shot and killed, Jaramillo allegedly told fellow gang members that he wanted Hernandez inducted into F13’s Jokers clique because he “proved [Jaramillo] solid.”

    The following month, Jaramillo and Hugo Armando Pineda, 36, a.k.a. “Menace,” of South Los Angeles, allegedly murdered “D.E.,” another F13 member in bad standing.

    The rest of this superseding indictment alleges a series of criminal activity by Jaramillo and others, including the running of “casitas,” or illegal after-hours bars and clubs, including collection of extortionate “taxes” from them, trafficking of narcotics such as fentanyl and methamphetamine, and illegal use and possession of firearms.

    A second indictment unsealed today charges eight Florencia 13 associates – including Saul Ayon Quintero, 50, of Bellflower – with drug-related crimes, including conspiracy to distribute fentanyl, methamphetamine, and heroin, and illegally using and possessing firearms and ammunition.

    Finally, nine additional Florencia 13 members and associates are charged in eight separate indictments with methamphetamine distribution counts, and another Florencia 13 member is charged in a separate indictment with possession of an unregistered firearm and being a felon in possession of firearms and ammunition.

    An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.

    If convicted, most of the defendants would face a mandatory minimum sentence of 10 years in federal prison and a statutory maximum sentence of life imprisonment.

    The FBI, the Los Angeles Police Department, the Los Angeles County Sheriff’s Department, and the United States Marshals Service are investigating this matter.

    Assistant United States Attorneys Christopher C. Kendall and Daniel H. Weiner of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting these cases.

    This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.

    MIL Security OSI –

  • MIL-OSI Security: NICS Enhanced Background Checks for Under-21 Gun Buyers Showing Results

    Source: US FBI

    Since implementing enhanced background checks for under-21 gun buyers in October 2022, the NICS Section of the FBI’s Criminal Justice Information Services (CJIS) Division in Clarksburg, West Virginia, has conducted enhanced background checks on more than 200,000 under-21 transactions. Of those, it has denied more than 600 transactions based solely on “prohibitive” information provided during the enhanced background checks.

    “Those people would have received a firearm under a traditional check,” said CJIS Division Assistant Director Michael A. Christman. He went on to say that NICS Section staff have spent the past year holding more than 500 training events and reaching more than 4,000 law enforcement agencies so they will understand why the NICS examiners may be reaching out someday soon, if they haven’t already. The outreach effort encourages agencies to respond to NICS quickly, even if it’s only to say they’re unable to assist because of local laws or privacy concerns.

    “When you’re lacking those criminal history records, particularly a disposition that evidences a conviction for prohibiting offenses—typically a felony—you’re left short-handed,” Christman said.

    The BSCA enhanced background checks for under-21 transactions began with a handful of states in late 2022 and opened fully in January 2023. The FBI’s NICS Section provides full-service background checks to federal firearms licensees in 31 states, five U.S. territories, and the District of Columbia. Fifteen states currently perform all their own background checks through the NICS application, and in the remaining four states, the FBI and the state each provide partial service, ensuring that, together, these states have full NICS access.

    Early on, state and local law enforcement and mental health agencies were generally slower to respond to NICS examiners when enhanced background checks were sent. Some people didn’t know how to respond. And many state and local agencies restrict sharing juvenile criminal histories or juvenile mental health records. The NICS Section continues to consider and pursue all viable avenues for maximizing benefits, and mitigating impacts, to prospective transferees, state and local partners, and the NICS Section itself.

    About 64%, and increasing, of the agencies contacted by NICS examiners respond. That’s up from about 30% a year ago.

    MIL Security OSI –

  • MIL-OSI Security: Investigating Torture: FBI-HSI Investigation Leads to U.S. Citizen’s Conviction for Human Rights Violations in Iraq

    Source: US FBI

    Seeking Victims and Witnesses

    In the meantime, O’Donnell and Burke continued their investigation. They believed that interviews with Roggio’s former employees—largely Estonians, but also other Europeans who’d been handpicked by his special assistant—could help strengthen the case. And that gut feeling proved right.

    When the duo learned that a former female employee of Roggio’s—an Estonian citizen—was slated to travel through John F. Kennedy International Airport in New York, they worked with Estonia’s Internal Security Service to interview her about her experience with Roggio. The woman turned out to be the first international employee of Roggio’s weapons facility. She shared enough information with O’Donnell and Burke to justify a trip to Estonia to conduct a more in-depth interview with her in a friendlier setting.

    Investigators hoped that the interview could help them put the finishing touches on their counterproliferation investigation. But that trip yielded more than just a follow-up conversation.

    It also gave investigators the chance to meet a second former weapons factory employee, who surprised the investigators with a six-year-old cellphone recording that captured Roggio making threats of torture, confessing to that and other crimes, and even speaking to motive.

    This was the first time they’d heard torture allegations concerning Roggio.

    After interviewing these and other former employees, investigators returned to the U.S. with a case, having identified a new and urgent objective: to seek guidance and expertise from the FBI’s International Human Rights Unit to seek a potential prosecution for torture violations.

    The FBI is responsible for investigating torture if the victim is a U.S. person, or if the perpetuator is either a U.S. person or if they’re physically located within our country’s borders. This jurisdiction comes from 18 USC, Section 2340A.

    The agents knew they had to act quickly—and carefully.

    Careful collaboration between the case team, the FBI’s International Human Rights Unit (part of our Criminal Investigative Division), federal victim services providers, multiple FBI legal attaché offices, the U.S. Department of Justice, and our Estonian law enforcement partners enabled the case team to travel to Estonia to conduct forensic interviews with these subjects.

    The investigators got the greenlight to take a joint trip with DOJ prosecutors to explore the matter of torture in great detail. The investigative team leveraged their agencies’ resources and connections, as well as international partnerships, to locate and interview multiple former employees of Roggio’s who may have witnessed or been victims of torture.

    FBI Supervisory Child-Adolescent Forensic Interviewer Jacqueline Goldstein—who, at the time, held a similar role at HSI—helped ensure these conversations were cognizant of the trauma that these people’s experiences with Roggio may have left them with, while still being admissible in court and supporting investigative needs.

    “It’s designed to pass judicial scrutiny,” she said. “So it’s non-leading, non-suggestive. But it’s also trauma-informed so that the investigative interviewing process is uniquely suited to the developmental, cognitive, clinical needs of that individual, and we’re not creating additional trauma in that investigative process.”

    And with that, in August 2021, investigators were finally able to interview Roggio’s victim: a man who’d been held in captivity and subjected to physical and mental torture—including physical beatings, suffocation, and choking—for more than a month.

    “He had very vivid recollection,” O’Donnell said. “Some people blacked out everything. This guy remembered every detail of a lot of what happened.”

    Law enforcement also captured statements from a wider group of former employees who’d been forced to witness Roggio’s brutality against the victim. They also convinced the witnesses to travel to the United States to testify against Roggio in federal court.

    As a result of these efforts, a federal grand jury returned a superseding indictment in 2022—which added a charge of torture and a charge of conspiracy to commit torture to Roggio’s already long list of alleged crimes—and he was again arrested.

    MIL Security OSI –

  • MIL-OSI Security: El Salvadoran National Indicted for Firearm Possession

    Source: US FBI

    NEW ORLEANS, LOUISIANA – Acting United States Attorney Michael M. Simpsonannounced that EDGAR YOVANI PEREZ-GUTIERREZ (“PEREZ-GUTIERREZ”), age 27, a native of El Salvador, was indicted on April 24, 2025, for being an illegal alien in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(5)(A) and 924(a)(8).

    According to court documents, on or about April 10, 2025, PEREZ-GUTIERREZ, an individual unlawfully present in the United States, was found in possession of a Glock handgun.  He was arrested by the New Orleans Police Department, Federal Bureau of Investigation, and Immigration and Customs Enforcement – Enforcement and Removal Operations officers, for violating immigration and federal gun control laws.

    If convicted, PEREZ-GUTIERREZ faces a maximum penalty of 15 years of imprisonment, up to a $250,000 fine, up to three years of supervised release, and a $100 mandatory special assessment fee.

    Acting U.S. Attorney Simpson reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.

    Acting U.S. Attorney Simpsonpraised the work of the U.S. Immigration and Customs Enforcement – Enforcement and Removal Operations, the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Spiro G. Latsis of the General Crimes Unit is in charge of the prosecution.

    This case is part of Operation Take Back America [link], a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

    MIL Security OSI –

  • MIL-OSI Australia: Two in custody following Launceston CBD incident

    Source: New South Wales Community and Justice

    Two in custody following Launceston CBD incident

    Friday, 23 May 2025 – 3:48 pm.

    Two people are in custody assisting police after an alleged incident involving an imitation firearm in Launceston CBD earlier today.
    Shortly after midday, police received reports of a man in possession of what was believed to be a handgun while in the CBD with another man.
    The men left the area in a small silver Holden hatch before the vehicle was quickly intercepted by police and they were safely taken into custody.
    An imitation firearm was located within the vehicle and seized.
    Nobody was physically injured or threatened during the incident and the men remain in custody assisting police.
    Investigations are ongoing, and anyone with information is asked to contact police on 131 444 or Crime Stoppers on 1800 333 000 or at crimestopperstas.com.au. Information can be provided anonymously.

    MIL OSI News –

  • MIL-OSI Security: Two Men from Ohio and Colorado Arrested for Assaulting Law Enforcement and Other Offenses During January 6 Capitol Breach

    Source: US FBI

                WASHINGTON — Two men from Ohio and Colorado have been arrested for allegedly assaulting law enforcement and other offenses related to their alleged conduct during the Jan. 6, 2021, breach of the U.S. Capitol. Their alleged actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the 2020 presidential election.

                Joseph Charles Valentour, 66, of Centerville, Ohio, and Jonathan Wayne “Duke” Valentour, 26, of Boulder, Colorado, are each charged in a criminal complaint filed in the District of Columbia with felony offenses of assaulting, resisting, or impeding certain officers and obstruction of law enforcement during a civil disorder.

                In addition to the felonies, both men are charged with five misdemeanor offenses, including entering and remaining in a restricted building or grounds, disorderly and disruptive conduct in a restricted building or grounds, engaging in physical violence in a restricted building or grounds, disorderly conduct in a Capitol building, and act of physical violence in the Capitol grounds or buildings.

                The FBI arrested Joseph Valentour on Friday, January 3, 2025, in Ohio, where he made his initial appearance in the Southern District of Ohio. Jonathan Wayne Valentour was arrested on Monday January 6, 2025, in Colorado and made his initial appearance in the District of Colorado.

                According to court documents, police body-worn camera footage shows Joseph Valentour approaching a police line on the Lower West Terrace of the U.S. Capitol building on Jan. 6, 2021, appearing to purposefully back into it. It is alleged that after Valentour made contact with the police line, an officer attempted to push him back, but other rioters grabbed the officer’s baton and dragged the officer into the crowd.  Shortly thereafter, amid the ensuing chaos, additional body-worn camera video captured Valentour pushing against the police line. It is alleged that Valentour touched an unknown police officer’s shield multiple times and appeared to be working with other rioters to disarm the officer of the shield. Court documents say that Valentour’s efforts were eventually successful, causing the officer to fall down a flight of stairs.

                Another officer then responded to the incident and went to assist the fallen officer; however, it is alleged that Valentour impeded the assisting officer’s forward movement by lowering his shoulder to hip height and forcibly using his body weight to charge at and push the assisting officer. Valentour’s efforts were successful as he moved the assisting officer away from the other officers. Additional police body-worn camera footage showed Valentour pushing the police line and making purposeful contact with yet another officer. Valentour then disengaged and moved into the crowd of rioters.

                Court documents say that Valentour’s son, Duke, was roughly in the same area as his father. Police body-worn camera footage showed Duke, at about 2:04 p.m., allegedly charging through other rioters toward the police line. As Duke approached police, he interfered with, and resisted officers along the police line by forcibly pushing other rioters in front of him into the police line. It is alleged that Duke simultaneously attempted to grab and interfere with the officers at this location. Officers eventually successfully repelled Duke down a flight of stairs.

                Shortly thereafter, it is alleged that Duke ran back up the stairs behind another rioter (who was carrying what appeared to be a police shield). Duke appeared to use this rioter for protection as he, again, attempted to interfere with officers along the police line by pushing this rioter into the officers. A nearby police officer deployed pepper spray in Duke’s direction, and Duke quickly retreated back down the stairs and into the mob.

                This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Offices for the Southern District of Ohio and the District of Colorado.

                This case is being investigated by the FBI’s Cincinnati, Denver and Washington Field Offices. The FBI identified Joseph Valentour as BOLO AFO (Be on the Lookout Assault on Federal Officer) #494 on its seeking information images. Valuable assistance was provided by the United States Capitol Police and the Metropolitan Police Department.

                In the 48 months since Jan. 6, 2021, more than 1,583 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 600 individuals charged with assaulting or impeding law enforcement, a felony. The investigation remains ongoing.

                Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.

                A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    MIL Security OSI –

  • MIL-OSI Security: Former Columbus Police Officer Sentenced to More Than Four Years in Prison for Stealing Cocaine From Crime Scenes, Police Evidence Room

    Source: US FBI

    COLUMBUS, Ohio – A former Columbus police officer was sentenced in federal court here today to 50 months in prison for crimes involving more than 15 kilograms of cocaine and money laundering.

    Joel M. Mefford, 35, of London, Ohio, was a Columbus police officer assigned to investigate drug crimes. On three occasions between February and April 2020, Mefford worked with another officer to steal and traffic cocaine.

    “Crimes like those that Mefford committed undermine the integrity of the criminal justice system. Mefford abused his official position for personal gain,” said U.S. Attorney Kenneth L. Parker. “Today’s substantial prison sentence is necessary to reflect the gravity of his offenses and to promote respect for the law. Corrupt public servants will be held accountable.”

    According to court documents, in February 2020, Mefford and the other officer were investigating a drug crime and unlawfully gained access to a detached garage belonging to the subject of the investigation. Without a warrant, they entered the garage and discovered two kilograms of cocaine in the rafters. They unlawfully seized one of the kilograms and left the other to be found during the execution of a search warrant the next morning. The other officer gave the stolen narcotics to another individual to sell.

    Similarly, in February and March 2020, Mefford and the other officer were investigating drug-trafficking activity at houses on Ambleside Drive and Kilbourne Avenue in Columbus. On March 7, 2020, the officers took a bag containing multiple kilograms of cocaine from the house on Ambleside Drive and arrested an individual there. They then traveled to the house on Kilbourne Avenue and removed a kilogram of cocaine. That same day, Mefford turned in one kilogram of cocaine to evidence, and the officers stole the other kilograms to be sold.

    In April 2020, Mefford and the other officer stole between 10 and 20 kilograms of cocaine from the Columbus police property room and replaced it with fake cocaine. Mefford transported the stolen cocaine in a police cruiser and the other officer later gave the drugs to another individual to sell. The drug proceeds were then given to the other officer, who provided Mefford his cut. Mefford personally received a total of approximately $130,000 from cocaine sales.

    Mefford deposited more than $72,000 of the cash derived from the cocaine sales into his personal bank account.

    A federal grand jury indicted Mefford in December 2023 and he pleaded guilty in August 2024 to two counts of possessing with intent to distribute 500 grams or more of cocaine, one count of possessing with intent to distribute five kilograms or more of cocaine, and one count of money laundering.

    Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed today by U.S. District Judge Edmund A. Sargus Jr.

    Assistant United States Attorneys Peter K. Glenn-Applegate and Elizabeth A. Geraghty are representing the United States in this case.

    The case was investigated by the FBI’s Southern Ohio Public Corruption Task Force, which includes special agents and officers from the FBI, Ohio Attorney General’s Bureau of Criminal Investigation, the Ohio Auditor of State’s Office and the Columbus Division of Police.

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    MIL Security OSI –

  • MIL-OSI Security: Member of Multimillion-Dollar Ponzi Scheme Involving Off-the-Road Tires Pleads Guilty

    Source: US FBI

    COLUMBUS, Ohio – A member of a $50 million, multi-state Ponzi scheme conspiracy pleaded guilty in federal court here today. 

    John K. Eckerd, Jr., 60, of Dallas, admitted to conspiring to commit wire fraud and tax crimes. In total, Eckerd received at least $14 million from the tire sales scheme. Eckerd’s plea agreement includes a sentence recommendation of 36 to 109 months in prison.

    Conspiring with previously convicted and sentenced defendant Jason E. Adkins, 47, of Jackson, Ohio, Eckerd and others participated in a multi-million-dollar Ponzi scheme.

    According to court documents, Eckerd and other members of the conspiracy portrayed to investors that they were in the business of buying and selling off-the-road tires. Off-the-road tires are over-sized tires that are used on earth moving equipment and/or mining equipment.

    Eckerd recruited investors and represented to investors that he worked with Adkins in tire sales. Few if any transactions were completed as designed. Instead, investor funds were used for the personal use of Eckerd and other members of the conspiracy, and to repay other victims. On multiple occasions, investors who were solicited by Eckerd invested in purported tire deals and then either lost money in tire deals that fell apart or were paid back some or all of their investments with other victims’ money, or both.

    Eckerd also conspired with Adkins to evade the payment of income taxes. Beginning in mid-2016, Eckerd made attempts with Adkins to re-classify payments from Adkins as loans, to avoid tax consequences. He also concealed income through shell entities and nominees. Eckerd has admitted evading the payment of $1,028,454 in taxes.

    A final restitution amount will be set by the Court at sentencing. The plea includes the forfeiture of $14 million, which will be satisfied in part by the forfeiture of Eckerd’s home in McKinney, Texas.

    Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Karen Wingerd, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation; and Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the guilty plea entered today before U.S. District Judge Algenon L. Marbley, Jr. Assistant United States Attorneys S. Courter Shimeall, Peter K. Glenn-Applegate and David J. Twombly are representing the United States in this case.

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  • MIL-OSI Security: Businessman Indicted for Manipulating Five Publicly Traded Companies and Defrauding Investors of More Than $200 Million

    Source: US FBI

    Note: A copy of the indictment can be found here.

    A federal grand jury in Dallas, Texas, returned an indictment yesterday charging a Texas businessman for his role in a yearslong scheme involving at least five publicly traded companies.

    According to court documents, Philip Verges, 59, of Dallas, controlled five publicly traded companies, which he used to engage in an investment fraud scheme from approximately January 2017 through August 2022. As part of the alleged scheme, Verges concealed his involvement in these five companies from the investing public by appointing trusted friends to serve as nominees. Verges then allegedly entered into sham consulting agreements with the companies that allowed the companies to execute convertible notes, which could be converted to shares at a steep discount from their fair market value. Verges allegedly artificially inflated the price and trading volume of shares by, among other things, issuing false public press releases and financial statements. As further alleged, Verges then sold his convertible notes to intermediaries who converted the notes into shares at below-market prices, sold the shares into the market for a profit, and shared the proceeds from the sales with Verges. In total, the alleged scheme resulted in approximately $211 million in losses to the public.

    Verges is charged with one count of securities fraud and two counts of money laundering. If convicted, he faces a maximum penalty of 20 years in prison on the securities fraud count and 10 years in prison on each money laundering count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and Special Agent in Charge Gregory D. Nelsen of the FBI Cleveland Field Office made the announcement.

    The FBI is investigating the case.

    Trial Attorneys Brandon Burkart and Matt Kahn of the Criminal Division’s Fraud Section are prosecuting the case.

    An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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